1. introduction to hrm

HUMAN RESOURCE MANAGEMENT

(HRM)

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Introduction

Organization is a group of people established either formally or informally for the attainment of certain objectives.

So, people are the foundation of any organization.In societal context, organization need people and

people need organization. It is people who staff, lead and control

organizations.Persons involved in an organization are referred as

human resource. Simply, the overall management of such personnel

in an organization is called human resource management (HRM).

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Who are Human Resource?

In organizational context, the personnel involved in different activities of an organization are the human resources of that organization.

Such type of personnel (referred as human resources) have one thing common i.e. fulfillment of their assigned duties & responsibilities in order to achieve the organizational goal and objectives.

People become human resource when they involved in any organization with physical strength, energy and competencies. Competencies consists of knowledge, skill, attitudes and potential for growth.

Human resources are effectively mobilized by the organization for the achievement of desired results.

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Human Resource Management

An essential function of management; and also an important part of every manager’s job.

HRM is concerned with managing people in organizations.

It is concerned with philosophy, principles, policies and practices related to human aspect of management.

It aims at achieving organizational objectives through the efficient and effective mobilization of human resources.

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Contd…

According to Donnelly and Gibson,HRM is the process of accomplishing

organizational objectives by acquiring, retaining, terminating, developing and properly using the human resources in an organization.

According to Gary Dessler,HRM refers to the policies and practices involved

in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising.

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Human Resource Management (HRM) is a process concerned with the management of personnel along with their energies and competencies for the achievement of organization objectives by the process of acquiring, developing and utilizing such personnel.

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Evolution of HRM

A number of academics and practitioners in the past have contributed a great deal to the development of HRM.

The history of its development goes back to the early management pioneers, Robert Owen (1771 – 1858) and Charles Babbage (1792 – 1871).

Similarly, other developments such as the industrial revolution, the principles of scientific management, the classical organization theory and more recently, the behavioral science movement and the organization development movement have influenced the development of personnel management and HRM.

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Contd…

The trend of the development of HRM in the

past can be explained through following

periods.

Early Scientific Management

Scientific Management

Human Relations Movement

The New HRM Era

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Early Scientific Management

The history can be traced back to the Origin of Personnel Management. In the beginning of 18th century, many masons, carpenters, leather workers and people of other crafts organized themselves into guilds.

In the later part of 18th century, the Welfare Concept was developed by some prominent family business houses in the UK.

Industrial Revolution started from the late 18th century. Labor was treated as commodity to be bought or sold. There was strict system of punctuality and rigorous working rules.

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Scientific Management

F.W. Taylor invented principles of scientific management in the 19th century.

He suggested to plan work and gave methods to maximize productivity and minimize inefficiencies.

In his studies, he explained less about humanization of workplaces and focused more on output from the workers.

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Human Relations Movement

Elton Mayo and Fritz Roethlisberger investigated the causes of low productivity different from Taylor’s perspective.

The Hawthorne studies (1927 – 1932) laid the foundation for the human relations movement and explain why human elements are important to rise productivity.

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The HRM Era

It was by 1920s, personnel management began to taught at university level in US.

At the period of 1920s, a number of large companies established personnel departments.

During 1930 – 1950, many instances of exploitation of labor appeared.

Subsequently, a labor relations movement in the form of Labour Unions and collective bargaining emerged and remained successful during 1935 – 1960.

Personnel department started to work in collaboration with union representatives.

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Contd…

The HRM era, began in 1950s, comprises

the work of pioneers,

human capital concept,

concept of corporate culture and

the new HRM.

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The Work of PioneersPeter F. Drucker is the main inventor of HRM

concept. He had suggested how an effective management contributes to direct all managers towards a common goal.

Douglas McGregor emphasized the strategic importance of personal policies and their integration with business objectives.

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Human Capital Concept

T. Schulz invented human capital theory and

cited example of how qualified and committed

human resources contributed in the post war

economy of Germanny and Japan.

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Concept of Corporate CultureThe book “The art of Japanese Management”

by R. Pascale and A. Athos in 1981 stated that shared values of management and workers are the secret of Japanese Management.

The book “In search of excellence” written by T.J. Peters and R. Waterman in 1982 named 43 successful companies in the U.S. that were driven by the managers’ values and achieved productivity by paying close attention to the needs of their people.

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The New HRMTraditional American personnel management and

industrial relation systems were challenged by the process of globalization, rapid technological advances, shorter product lifecycles and changing customers and investors demands.

Many US industries were facing the under-utilization and unemployment of human resources.

The reasons for such problems were: adverse union-management relations, low employee motivation & trust in management, hierarchical management, restrictive work practices and, finally, resistance of the employees towards change to cope with the competitive environment.

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Promoted by this challenges, American business has begun to place greater emphasis on the management of human resources to improve productivity and quality and thus to be competitive internally and externally.

In academic literature, at least, the terms ‘personnel management’ and ‘personnel administration’ have been virtually replaced by the term ‘HRM’.

In UK, the concept of HRM arrived around 1985 – 86, when the British industry was suffering from restructuring effects due to recession & loss of competitiveness.

Anti-union legislation of the Thatcher government encouraged firms to introduce new labor practices and re-order their collective bargaining arrangements.

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Nature of HRM

Human FocusPeople concern, develops & utilize human potential,

regard people as an important asset of organizationManagement FunctionApplies mgmt principles & functions, perform by all

level of managersDynamicAffected by changes in envn (political-legal,

economic, socio-cultural & technological)Mutually orientedMutuality between employer and employees. Continuous-ongoing activity

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Components of HRM

Human Resource Planning

Recruitment & Selection

Performance Management

Training and Development

Employee – Management Relation

Management Information System

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HRM Process

The process of HRM involves attracting, developing and maintaining a talented and energetic workforce.

The basic goal of HRM is to build organizational performance capacity by raising human capital, to ensure that highly capable and enthusiastic people are always available.

The 3 major responsibilities of HRM areA.Attracting a quality workforceB.Developing a quality workforceC.Maintaining a quality workforce

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Contd…

Attracting a quality workforceInvolves human resource planning, employee

recruitment and selection.Developing a quality workforceInvolves employee orientation, training &

development and performance appraisalMaintaining a quality workforceInvolves career development, work life

balance, compensation and benefits, retention and turnover, and labor-management relations.

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Attracting a quality workforce

Human Resource Planning

Recruitment

Selection.

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Developing a quality workforce

Induction/orientation

Training and Development

Performance Appraisal

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Maintaining a quality workforce

Career Development

Work-life Balance

Compensation and Benefits

Retention and turnover

Labor-management Relations

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Elements & Model of HRM27

Functions of HRM

Human Resource PlanningAcquisition of Human ResourcesUtilization of Human ResourcesDevelopment of Human ResourcesMaintenance of Human ResourcesControl of Human ResourcesHarmonious Employer-Employee RelationshipAttainment of organizational objectives

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System Model of HRM

Input ProcessOutpu

t• Human energy & competencies• Organizational Plan• HR Plan• HR Inventory • Job Analysis

• Human energy & competencies• Organizational Plan• HR Plan• HR Inventory • Job Analysis

• Acquisition• Development• Utilization• Maintenance

• Acquisition• Development• Utilization• Maintenance

Organizational• Goals achievement• Quality of work life• Productivity• Readiness for changePersonal• Commitment• Competence• Congruence

Organizational• Goals achievement• Quality of work life• Productivity• Readiness for changePersonal• Commitment• Competence• Congruence

Feedback

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Challenges to HRM

GlobalizationTechnological AdvancesNature of workSize & composition of the workforce.Rising employees' expectationsLife-style changesLess attached/temporary employeesNew HRM concernsLearning organizationsImpact of new economic policy. Political ideology of the Government.

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Trends and Issues of HRM

Issues of HRM in Nepal Corporate Planning and Objectives Human Resource Planning Recruitment, Selection and Placement Employee training and development Performance Evaluation Salary and other benefits Job Design Employee Relations

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Barriers to Development of HRM in Nepal

HRM in Nepal is mainly concerned with utilizing human energies.

It is least concerned with developing human competencies and potential for growth of employees.

Its focus is on achieving organizational goals without much regard to personal goals of employees.

HRM has not assumed a strategic role in Nepalese management.

People are not considered as a source of competitive advantage and important assets.

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Contd…

HRM is not given a strategic role. It lacks clear cut vision, mission and goals.

The attitudes of top management are not favorable towards HRM. Human resources are viewed as a cost rather than assets by management.

HRM is considered as a firefighting job to deal with labor grievance and indiscipline.

Line managers do not feel ownership for HRM.Lack of mutual trust between labor and

management.Multiplicity of unions, union challenges,

politicialization of unions and negative attitude of management towards labor unions.

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Contd…

HR aspects are not considered in policy and plan formulation.

Human resource development has remained an area of low priority. This has retarded professionalism in HRM. Performance based HRM practices are lacking.

Legal framework has remained weak and largely welfare oriented.

HRM is short range oriented. It is least concerned with future potential development of employees.

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